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Business Revitalization for a Leisure Center

Overview

This case study highlights Krugman & Partners’ strategic intervention in revitalizing a leisure center targeting young families and their kids. Despite a significant initial investment, the center, only two years in operation, struggled to reach its break-even point.

Krugman & Partners were tasked with analyzing the market, redefining the business model, and setting the business on a sustainable growth path.

Client Background

Industry 
Leisure and Entertainment

Target audience  
Young families and children

Challange 
Failure to reach break-even point post a substantial investment 

Age
2 years 

Objectives

To perform an in-depth market analysis and customer profiling.
To assess the strengths and weaknesses of the client’s business.
To develop a viable business plan to streamline operations and achieve profitability.
To establish partnerships with suppliers and negotiate beneficial business terms.

Process

  • 1. Market Analysis: Investigating the current market trends, demand dynamics, and competition in the leisure and entertainment sector.
  • 2. Customer Profiling: Identifying the key demographics, preferences, and behaviors of the target audience - young families and their children.
  • 3. Strengths Assessment: Evaluating the unique selling propositions and competitive advantages of the client’s services.
  • 4. Business Plan Development: Crafting a comprehensive business plan focusing on profitability, market penetration, and sustainable growth.
  • 5. Supplier Partnerships and Sponsorship: Attracting suppliers as sponsors to promote their businesses at the client's location and negotiating mutually beneficial terms.
  • 6. Business Model Simplification: Restructuring the business model to enhance efficiency and reduce operational complexities.

Results

The client gained a clearer insight into the needs and expectations of their target market.
Simplification of the business model led to reduced operational costs and improved efficiency.
Partnerships with key suppliers and sponsors provided additional revenue streams and marketing opportunities.
The new business plan provided a clear direction for growth and a roadmap to achieve financial sustainability.
Post-implementation, the leisure center saw a steady increase in patronage, leading to a positive shift towards achieving and surpassing the break-even point.

Client testimonial

We are grateful for the expertise and guidance provided by Krugman & Partners. Their strategic analysis and business plan were crucial in turning our leisure center around. Their approach not only helped us understand our market better but also positioned us for profitable and sustainable growth. 

Founder, Leisure Center

Conclusion

  • Krugman & Partners' intervention was pivotal in transforming the trajectory of this leisure center. Through meticulous market analysis, customer profiling, and strategic business planning, the client was able to reposition itself in the market, attract key partnerships, and streamline its operations, leading to a successful and profitable business model.

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